Answer questions 1 through 5 Connelly Inc.
Part-1 |
Operating Income = Contribution -Fixed Cost |
( Contribution per Unit X Unit Sold)- Fixed Expense |
=(100-54)*50500-515000 |
=$1808000 |
Part-2 |
Contribution Margin per Unit ( 100-54)=$46 |
Fixed Expense= $515000 |
BEP( Unit)= Fixed Expense/ Contribution Pe Unit |
=$515000/$46= 11196 Unit |
Part-3 |
Sales Target= 54400 |
Addition Fixed Selling Expense :- $226600 |
Revised Fixed Expense= $515000+226600 |
=$741600 |
Total Contribution = Contribution per Unit X Unit Sold |
=(46X 54400)= $2502400 |
Operating Income = Contribution -Fixed Cost |
=$2502400-$741600= $1760800 |
Part-4 (a) | |
New BEP( Unit)= Revised Fixed Expense/ Contribution Pe Unit | |
=$741600/$46= 16122 Unit |
Part-4(b) | |
Contribution Income Statement | |
Sales (16122X $100) | $1,612,200.00 |
Less: | |
Variable cost 16122X 54) | $870,588.00 |
Contribution | $741,612.00 |
Less: Fixed Cost | $741,600.00 |
Net Operating Income | $12.00 |
Difference is due to Rounded Off BEP Unit |
Part-4© |
Change in BEP= Revised BEP- Original BEP |
16122-11196=4926 |
% change in BEP= 4926/11196=44% |
Change in Fixed Expense= Revised Fixed Expense- Original Fixed Expense |
=741600-515000= $226600 |
% change in Fixed Cost= = 226600/515000=30.56%% |
Part-5 |
Revised Fixed Expense= 741600 |
Current operating income = 1808000 |
Contribution Margin Per Unit=$46 |
Total Contribution Required= 741600+1808000=$2549600 |
BEP= $2549600/$46=52033 Unit |
52033 Unit need to be sold |
Answer questions 1 through 5 Connelly Inc. Connelly Inc., a manufacturer of quality electric ice cream makers, has e...
Answer questions 1 through 5 Connelly Inc. Connelly Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years. Because her business has grown, Jan De Janey, the president, believes she needs an aggressive advertising campaign next year to! maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year $ 20.00 24.00 10.00 54.00 $ Variable costs per ice cream maker...
Connelly Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years. Because her business has grown, Jan De Janey, the president, believes she needs an aggressive advertising campaign next year to maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year. $ 13.50 14.50 6.00 34.00 $ Variable costs per Ice cream maker Direct labor Direct materials Variable overhead Total...
Connelly Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years Because her business has grown, Jan De Janey, the president, believes she needs an aggressive advertising campaign next year to maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year: $ eBook 17.00 20.50 8.50 46.00 $ Variable costs per ice cream maker Direct labor Direct materials Variable overhead...
Connelly, Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years. Since her business has grown, Jan DeJaney, the president, believes she needs an aggressive advertising campaign next year to maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year: Variable costs per ice cream maker Direct labor Direct materials Variable overhead $ 17.00 20.50 8.50 Total variable costs $...
Connelly Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years. Because her business has grown, Jan De Janey, the president, believes she needs an aggressive advertising campaign next year to maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year: $ 16.00 19.00 8.00 $ 43.00 Variable costs per ice cream maker Direct labor Direct materials Variable overhead Total...
Answer 4-c and 5 please Connelly Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years. Because her business has grown, Jan De Janey, the president, believes she needs an aggressive advertising campaign next year to maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year: $ 17.00 20.50 8.50 46.00 $ Variable costs per ice cream maker Direct labor...
Connelly Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years. Because her business has grown, Jan De Janey, the president, believes she needs an aggressive advertising campaign next year to maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year: $ 23.00 27.50 11.50 $ 62.00 Variable costs per ice cream maker Direct labor Direct materials Variable overhead Total...
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Exercise 9-21 Breakeven Planning; Profit Planning (LO 9-2, 9-3] Connelly Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years. Because her business has grown, Jan DeJaney, the president, believes she needs an aggressive advertising campaign next year to maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year: 17.00 20.50 8.50 46.ee $ Variable costs per ice cream maker...
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